City Union Bank Jumps 13% After Q3 Results: Here’s How the Company Performed

Synopsis: City Union Bank’s Q3FY26 net profit rose 16 percent YoY to Rs. 332.1 crore on 28 percent higher net interest income of Rs. 752.2 crore, with advances up 21 percent and improved asset quality.

Shares of a small-cap company, which happens to be one of India’s oldest private banks, surged over 13 percent in today’s trading session after the bank announced its Q3 results, reflecting strong investor confidence and renewed market interest in its performance.

With a market capitalization of Rs. 22,448.47 crore, the shares of City Union Bank Limited were trading at Rs. 302.50, up by 5.97 percent from its previous day’s closing price of Rs. 285.45. 

Q3FY26 Results

The City Union Bank reported net interest income is Rs. 752.2 crore, up by 28 percent as compared to Rs. 587.7 crore in Q3FY25, and up by 12.86 percent compared to Q2FY26 of Rs. 666.5 crore, indicating a slight improvement in the operational efficiency yearly. Net Advances increased by 21 percent from Rs. 50,409.3 crore to Rs. 60,892 crore Year over Year.

Net profit was Rs. 332.1 crore in Q3FY26, it increased by 16 percent as compared to Rs. 286 crore in Q3FY25 and increased by 1 percent QoQ from Rs. 328.6 crore in Q4FY25. The amount of CASA deposits increased to Rs. 19,233.5 crore from Rs. 16,131.9 crore, which is an increase of 20 percent. 

The Return on Assets (ROA) stands at 1.53 percent whereas Return on Equity stands at 13.18 percent. The net interest margin (NIM) increased to 3.89 percent in Q3FY26 from 3.58 percent in Q3FY25, while the Cost-to-income ratio increased to 48.56 percent from 46.58 percent. The Cost of Deposits decreased from 5.88 percent to 5.57 percent.

The Gross NPA was 2.17 percent in Q3FY26 as compared to 3.36 percent in Q3FY25, and the Net NPA also stood at 0.78 percent from 1.42 percent year over year, indicating the company’s credit management system.

As of 31 December 2025, the company’s loan book totaled Rs. 60,892 crore. The portfolio is dominated by Cash Credit & Demand Loans, which make up 63 percent of total advances (Rs. 38,336.5 crore), followed by Term Loans at 36 percent (Rs. 22,221.8 crore). Bills Purchased & Bills Discounted account for the remaining 1 percent (Rs. 333.7 crore). Trading and MSME loans constitute about 40 percent of the portfolio, and the diversified credit mix with lower ticket sizes, backed by adequate collateral, helps reduce overall credit risk.

Founded in 1904 and headquartered in Kumbakonam, Tamil Nadu, City Union Bank is India’s oldest private sector bank. It primarily focuses on lending to MSMEs, retail/wholesale trade, and agriculture. As of December, the bank has INR 60,892 crore in advances and INR 70,516 crore in deposits, with a net interest margin of 3.69 percent and Net NPA of 0.78 percent. It operates 901 branches and 1,678 ATMs, employs 8,573 staff, and maintains an efficiency ratio of 48.62 percent.

As of December 2029, City Union Bank Limited’s shareholding pattern shows that Foreign Institutional Investors (FIIs) hold 23.49 percent, Domestic Institutional Investors (DIIs) own 40.23 percent, and the public holds 36.26 percent of the company’s equity, reflecting a balanced mix of institutional and retail ownership.

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